On 20 May 2020, the Cabinet of Ministers of Ukraine (the “CMU”) passed two important Resolutions in the energy sector: the Resolution on amendments to Regulations imposing Public Service Obligations (“PSO”) on electricity market entities (the “Resolution on PSO”), and the Resolution on amendments to the Procedure on holding electronic auctions for the sale of electricity under bilateral contracts (the “Resolution on the Procedure for Holding Auctions”).

On 28 April 2020, the Law of Ukraine “On Preventing and Counteracting the Legalization (Laundering) of Proceeds of Crime, Financing Terrorism and Financing the Proliferation of Weapons of Mass Destruction” (hereinafter – “Law No 361-20”) entered into force.

The COVID-19 lockdown has largely paralyzed the economy across the globe and will inevitably (if not yet) cause liquidity problems for many businesses. As a result, many anticipate a tsunami of bankruptcy cases to follow shortly.

The Cabinet of Ministers of Ukraine has announced the introduction of quarantine in Ukraine from 12 March until 24 April 2020 to prevent the spread of COVID-19¹. Since the quarantine regime imposes significant restrictions and limitations on business activity within the country, the government of Ukraine has introduced several defensive mechanisms to mitigate the adverse consequences of such restrictions.

In today’s circumstances, when the spread of coronavirus has literally paralyzed normal commercial activity in most business sectors, many companies are now facing serious financial difficulties. Quite often, distressed businesses are a potential threat to the banking system, which may be exposed to the risk of a non-performing loan (“NPL”) problem.

On 30 March 2020, Parliament enacted a new law: ‘On Amendments to Certain Legislative Acts of Ukraine to Provide Additional Social and Economic Safeguards in Ukraine during the Spread of Coronavirus (COVID-19)’ (Coronavirus Social and Economic Law).

On December 19, 2019, the bill No. 2634 “On amendments to the Tax Code of Ukraine on taxation by means of a value-added tax on electronic services provided by non-residents to individuals in the customs territory of Ukraine” (hereinafter – the bill), was registered in the Verkhovna Rada.

Law No. 530-ІХ “On Amendments to Certain Legislative Acts of Ukraine aimed at Preventing the Occurrence and Spread of Coronavirus Disease (COVID-19)” entered into force on March 17, 2020. In particular, the provisions of this Law determine that now force majeure (force majeure circumstances) apply to the quarantine established by the Cabinet of Ministers of Ukraine. Corresponding changes have been made to the Law of Ukraine “On Chambers of Commerce and Industry in Ukraine”.

The Cabinet of Ministry of Ukraine (“CMU”) updated the Conditions for Access to Geological Information (approved by CMU Resolution dated November 7, 2018 no. 939), which regulate main aspects of producing and using geological information.

On February 3, 2020, the Government registered in Parliament draft law No.2831 On the List of Objects of State Ownership that cannot be Privatised (the List). Previously, on October 2, 2019, the Parliament of Ukraine adopted a law 145-IX On the Abolition of the Law of Ukraine on the List of Objects of State Ownership that cannot be Privatised in its second reading.

The panel included representatives of Hogan Lovells, Ankura, Alfa Bank, the National Bank of Ukraine and Ukraine’s state asset recovery agency, ARMA. The panel discussed key strategic considerations in respect of global asset recovery and the most powerful remedies available to claimants, including Worldwide Freezing Orders.

James Hart commented “At the outset of a global asset recovery it may be unclear which jurisdictions will be center stage. In such circumstances, to minimize jurisdictional bias, it is vital that the strategic coordinator is a firm with very broad experience.”

As Hillmont Partners is preparing for the 2020 Ukraine House in Davos, James Hart shared his thoughts regarding the transformation of the industrial sector in his new article published in the Kyiv Post.

3rd annual Ukrainian Investment Road Show

Hillmont’s James Hart was a speaker at the 3rd annual Ukrainian Investment Road Show at Thompson Reuters in London on the 2nd December. The panel discussed the capital raising activity of leading Ukrainian businesses in the international markets with the participation of MHP, Metinvest, Kernel, DTEK Renewables, Interpipe, BCP Securities and Raiffeisen Bank International. Topics included successful Ukrainian corporate Eurobond placements this year, the first ever green bond issuance in the region, business and capital raising strategies of some of the country’s largest companies and investor sentiment towards Ukraine. The general view was that Ukraine’s macroeconomic indicators remain extremely attractive and the investment climate is generally favourable.

James Hart noted:

If the government and parliament deliver planned market-friendly legislative changes then Ukraine can become the biggest Emerging Market success story of 2020

On 11 September 2019 the Parliament of Ukraine adopted the draft law No.1031 “On Amendments to Certain Laws of Ukraine Relating to Expropriation of Illegal Assets from Persons Authorised to Execute Functions of State” on its first reading.

On August 21, 2019, the Cabinet of Ministers of Ukraine approved new procedures for state supervision and control of compliance with labor legislation. On August 30, 2019, these new procedures entered into force.

In light of recent news we wish to inform our colleagues, clients and partners that Hillmont Partners’ Vadym Halaichuk, Serhii Kalchenko and Andriy Lysiuk will be leaving the firm to concentrate on their upcoming parliamentary campaign.

The Law of Ukraine on ratification of the MLI Convention came into force on the 2 nd of April 2019 Accordingly, we should expect modification of Ukraine’s international treaties for the avoidance of double taxation (“double taxation treaties”, or “ in the nearest future What is the MLI Convention and what is the purpose of its development?

District Administrative Court of City Kyiv has granted the claim filed by “Kinokvartal” Company against State Security Service of Ukraine, Ministry of Culture of Ukraine, and State Agency in Charge of Cinematography regarding a ban introduced for “Svaty” TV series.

While the Code of Ukraine on Bankruptcy Procedures (‘Bankruptcy Code of Ukraine’) is still awaiting the signature of the President of Ukraine, we continue analyzing the forthcoming changes and developments that will come with the launched bankruptcy law reform in Ukraine.

On 27 May 2020, Hillmont Partners and The Legal 500 hosted a webinar entitled ‘Managing Risks during a Global Recession: Ukraine’s Perspective’. The event provided an expert overview of the government’s response to the pandemic and highlighted the most important initiatives that businesses should consider in order to mitigate the impact of the anticipated economic downturn.

Law № 466-IX “On Amendments to the Tax Code of Ukraine regarding Improvement of Tax Administration, Elimination of Technical and Logical Inconsistencies in Tax Legislation” was published in the official newspaper “Voice of Ukraine” on May 22, 2020.

Over the past few months, the Covid-19 pandemic has caused an unprecedented global economic and social crisis all over the globe. Ukraine is no exception. The pandemic has significantly affected all aspects of life, including the country’s domestic energy sector.

On 16 April 2020, the National Securities and Stock Market Commission of Ukraine (the “NCSSM“) approved the Provisional Procedure for the remote holding of general meetings of shareholders and general meetings of members of corporate investment funds (the “Provisional Procedure“).

Hillmont Partners is honoured to announce that it has been ranked as a Leading Firm in Ukraine in six practice areas according to the results of the Legal 500 EMEA, edition 2020. Four of the firm’s partners have been recommended by the research for the developments and client work in their core practices.

On 8 April 2020, the National Energy and Utility Regulatory Commission (“NEURC”) has adopted a new Resolution which temporarily introduces restrictions and obligations on electricity market participants (the “Special Measures”).

On March 31, 2020, the Verkhovna Rada of Ukraine adopted draft law No. 2178-10 (hereinafter – the “Law”), which introduces a land market in Ukraine from July 1, 2021. This historic event will have significant consequences, both for individual citizens of Ukraine and for the country.

As the number of coronavirus cases reported in Ukraine increases, state authorities keep actively debating the necessity of introducing a State of Emergency in Ukraine to cope with the COVID-19 outbreak.

In order to prevent the spread of coronavirus COVID-19 among the population of Ukraine, the Ukrainian Parliament recently adopted two laws No. 530-ІХ and No. 533-IX, which will significantly affect both business and the broader population in Ukraine. On March 17th, 2020 the President of Ukraine Volodymyr Zelensky signed the adopted laws and they were officially published. On March 18th, 2020 the laws entered into force.

The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (hereinafter – MLI Convention) is an effective tool for signatory countries to make amendments to some or all of their double taxation treaties (hereinafter – DTT) concurrently.

On October 23, 2019, the Cabinet of Ministers of Ukraine (hereinafter – CMU) adopted Resolution No.928 on amendments to Resolution No. 615 on the procedure for granting special permits for subsoil use, approved by the CMU on May 30, 2011. Resolution No.928 entered into force on November 21, 2019.

Raiding, or the illicit acquisition of property, has become one of the most critical bottlenecks of the Ukrainian economy and a major deterrent for investment. According to the statistics of the General Prosecutor Office of Ukraine, over the last seven years there were more than 3 200 raider attack incidents in Ukraine and, on average, about 400 raider attacks per year.

In September 2019 the Parliament of Ukraine commenced a large scale legislative overhaul of the country’s tax system through draft laws No.1208, No. 1080, No.1051, No.1057, No.1073, No.1053-1 and No.1210. Overall, these drafts attempt to unify tax innovations and to eliminate any contradictions in the tax system.

On 19 September 2019 the Parliament of Ukraine upheld the Draft Law No. 1070 On Amending Laws of Ukraine Regarding the Improvement of Conducting Financial Restructuring Procedure (‘the Law’), which was stated by the President of Ukraine to be urgent, and adopted it in its 2nd reading.

The National Bank of Ukraine ( has abolished a rule that required businesses to exchange 30 of their foreign currency earnings into Ukrainian hrivnia ( on the currency exchange market on the day following receipt of foreign currency on their bank account in Ukraine The new regulation took effect on 20 June 2019.

In recent years, Ukraine has created favorable conditions for the development of green energy, most specifically by means of establishing the highest feed-in tariff among countries on the European continent.

Clearstream, the international central securities depository of Deutsche Börse Group ICSD) has connected Ukraine to its electronic network and made Ukraine’s government securities available for purchase in its system since May 27.

Ukraine is one of the members of the World Intellectual Property Organization (WIPO), and has ratified major international treaties in the field of Intellectual Property (IP) that are in effect in Ukraine.

According to the 2018 Law of Ukraine “On Limited Liability and Additional Liability Companies” (“the LLC Law”), the deadline for bringing the wording of Ukrainian LLC charters in compliance with the LLC Law will expire on 17 of June 2019.

Associate Partner of the firm Serhii Kalchenko participated in the seminar devoted to problematic aspects of adjudication of administrative cases pertaining to the electoral process of the regular election of the President of Ukraine, organized by the Cassation Administrative Court of the Supreme Court.

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